BT wholesale price fears

Ofcom should not allow BT to significantly raise its wholesale prices on ADSL broadband, according to one expert.

BT has asked the communications watchdog to permit it to up the charges on its wholesale product by 11 per cent before the end of April and 22 per cent by 2012.

Dr Chris Doyle of Warwick Business School, recently appointed by broadband provider TalkTalk to produce a report on BT's wholesale prices, has said that any increases would contradict the government's ambitions to bring broadband access to the whole country.

He said: "The government recently set out ambitious plans to include all households in the digital revolution so it is puzzling that the regulator is proposing to allow BT to increase wholesale prices and so raise the barrier for lower income households."

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